With interest rates predicted to increase over the next couple of years, many savers believe that short term fixed rate bonds are a safer way to invest their cash.
For those willing to lock cash away for a longer period, there are deals offering a much higher rate of return. Here are the current best top three long term fixed rate bonds.
Skipton Building Society - Fixed Rate Bond 30.11.14
This savings bond pays a rate of 5.35 per cent. A monthly interest option is available at a lower rate of 5.25 per cent. Savers can invest between £500 and £1 million. Early access is not allowed, although further additions can be made whilst the issue is open. The account is open to savers aged 18 and over and can be operated in branch, by post or online.
Yorkshire Building Society – 5 Year Fixed Rate Bond
This account pays a rate of 5.30 per cent, although no interest is paid until 28th February 2011. A monthly interest option is also available at a lower rate of 5.18 per cent. Savers can invest between £100 and £2 million. Early access to funds is not allowed, although savers can make further additions while the issue is open. On maturity, funds transfer to a 2 Year Fixed Rate Rollover Bond, where access to funds is available for the first month.
Halifax – Web Saver
This five year bond pays a rate of 5.25 per cent on its anniversary. Investments range from £500 to £9 million. Early access and further additions are not allowed. The account can only be operated online by savers who open or have an existing variable rate Web Saver account. There is no age restriction for this account.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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